Itaú Asset Management expands into crypto with a new division.
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Itaú Asset Management Expands with New Crypto Division
In a significant move for the financial sector, Itaú Asset Management, Brazil’s largest private asset manager, has announced the formation of a dedicated cryptocurrency division. This strategic expansion aims to enhance the firm’s offerings within its multi-billion-dollar mutual funds arm by leveraging the volatile yet promising digital assets market.
Leadership and Strategic Vision
To spearhead this new initiative, Itaú Asset Management has appointed João Marco Braga da Cunha, a former executive at Hashdex, known for pioneering crypto exchange-traded funds (ETFs) in Brazil. Cunha’s expertise is expected to drive the division’s efforts in generating alpha for clients through innovative digital asset trading strategies.
Related: Global Cryptocurrency Market Capitalization Surpasses $4 Trillion for the First Time
Building on Existing Crypto Products
The new division builds upon Itaú’s existing crypto infrastructure, which includes a Bitcoin ETF and a retirement fund with digital asset exposure. The firm currently manages over 1 trillion reais (approximately $185 billion) in assets, underscoring its significant influence in the financial market. Itaú also facilitates direct trading of ten cryptocurrency pairs via its mobile app, including Bitcoin, Ether, Solana, and USD Coin, with in-house custody solutions.
Related: Pension Funds Opting for Bitcoin, Reaping Significant Benefits
Expanding Crypto Offerings
With the establishment of this division, Itaú Asset Management plans to develop a range of new crypto products. These will include fixed-income-style instruments and high-volatility strategies such as derivatives and staking-based funds, all operating within its mutual funds structure that oversees over 117 billion reais across 15 investment desks.
Brazil’s Crypto Landscape
Brazil has emerged as a key player in the global cryptocurrency market, ranking 10th in the “2024 Global Crypto Adoption Index” by Chainalysis. This growth is bolstered by a supportive regulatory framework, including a comprehensive crypto law enacted in 2023, which grants the central bank oversight of the sector. This regulatory environment has facilitated the launch of crypto trading services for retail clients by Itaú Unibanco and the approval of Brazil’s first spot XRP ETF by the country’s securities regulator.
Related: Nomura's Laser Digital Launches Regulated Crypto OTC Desk
Regulatory Challenges and Opportunities
Despite these advancements, Brazil’s crypto market faces regulatory challenges. A recent tax reform introduced a flat 17.5% tax on all crypto capital gains, replacing the previous progressive model and removing certain exemptions. This policy faced backlash and was subsequently revoked, reflecting the dynamic and evolving nature of the regulatory landscape.
As Itaú Asset Management forges ahead with its dedicated crypto division, the firm is poised to play a pivotal role in shaping Brazil’s digital asset market, offering innovative solutions to meet the growing demand for cryptocurrency investment opportunities.
Sophia is a pioneer in the world of Web3 and NFT ecosystems. With extensive experience in digital art and tokenomics, she breaks down the intricate relationships between creativity and blockchain technology. Her unique perspective bridges the gap between technology and culture.
